Quote:
Originally Posted by jfman
I’d go as far as nothing illegal. However Farage’s statement and the public exit poll manipulated the market.
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It was the Remain side that said that the pound would drop if the vote was for leave.
What people seem to forget is that the markets will turn a particular direction if enough people are convinced that a particular event will cause the market to turn in that direction. If the pound is thought to go down in the near future, then they are "forced" to sell in order to get the best price before it drops further. That selling is the thing that drops the price and NOTHING ELSE.
Eg On Black Wednesday when the UK was forced out of the ERM, the German Bundesbank, the BBC etc were determined to have the Pound devalued. That triggered a run of selling of the Pound which caused the value to drop. There was no real devaluation, only the fear of it being devalued.
After any fall they simply buy back what they sold for a cheaper price. They make profits out if it.